OncoCyte's Breakthrough GraftAssure Product and Bio-Rad Partnership

2024-04-15

OncoCyte recently conducted its Fourth Quarter and Year-end 2023 Earnings Conference Call, with key participants such as Joshua Riggs, Michael Matson, Mason Carrico, and Bruce Jackson taking part. The primary objective of the call was to review the company's financial performance for the fourth quarter and full year of 2023, along with discussing recent operational highlights.

During the call, Joshua Riggs emphasized several important points, including the successful reduction of OncoCyte's burn rate, the development of a new product named GraftAssure, and the announcement of a partnership with Bio-Rad to facilitate the global launch of the GraftAssure product. This collaboration with Bio-Rad holds significance as it offers validation and support for the worldwide introduction of the GraftAssure product, with Bio-Rad making investments in a private placement offering to expedite development and commercial activities.

The joint efforts between Bio-Rad and OncoCyte are concentrated on creating a regulated product and system intended to streamline broad distribution and clinical acceptance of core technology in the transplant monitoring domain. The GraftAssure kit, as mentioned during the discussion, is a user-friendly rapid turnaround test for monitoring and quantifying donor-derived cell-free DNA in the bloodstream, providing researchers and laboratories globally with an opportunity to leverage the technology for transplant monitoring purposes.

Moreover, OncoCyte's technology plays a critical role in the early identification of organ rejection in transplant recipients by pinpointing DSA-positive patients at heightened risk of rejection. Early detection through OncoCyte's technology can result in prompt intervention and enhanced patient outcomes.

Looking forward, OncoCyte intends to sustain its collaboration with Bio-Rad, with incremental investments in personnel to bolster the commercial strategy. Revenue projections for the company's products anticipate initial revenue generation from sites transitioning into revenue-generating customers in Q4, with further revenue expansion anticipated in subsequent quarters. The company aims to manage cash burn below $5 million on a quarterly basis, while also enlarging its sales and marketing team to support the agreement with Bio-Rad.